Correlation Between Qijing Machinery and Great Sun
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By analyzing existing cross correlation between Qijing Machinery and Great Sun Foods Co, you can compare the effects of market volatilities on Qijing Machinery and Great Sun and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Qijing Machinery with a short position of Great Sun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Great Sun.
Diversification Opportunities for Qijing Machinery and Great Sun
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Qijing and Great is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Great Sun Foods Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Sun Foods and Qijing Machinery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Qijing Machinery are associated (or correlated) with Great Sun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Sun Foods has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Great Sun go up and down completely randomly.
Pair Corralation between Qijing Machinery and Great Sun
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 0.82 times more return on investment than Great Sun. However, Qijing Machinery is 1.22 times less risky than Great Sun. It trades about -0.11 of its potential returns per unit of risk. Great Sun Foods Co is currently generating about -0.15 per unit of risk. If you would invest 1,405 in Qijing Machinery on October 12, 2024 and sell it today you would lose (118.00) from holding Qijing Machinery or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Great Sun Foods Co
Performance |
| Timeline |
| Qijing Machinery |
| Great Sun Foods |
Qijing Machinery and Great Sun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Great Sun
The main advantage of trading using opposite Qijing Machinery and Great Sun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Great Sun can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Great Sun will offset losses from the drop in Great Sun's long position.| Qijing Machinery vs. Biwin Storage Technology | Qijing Machinery vs. PetroChina Co Ltd | Qijing Machinery vs. Industrial and Commercial | Qijing Machinery vs. China Construction Bank |
| Great Sun vs. Liaoning Chengda Biotechnology | Great Sun vs. Qijing Machinery | Great Sun vs. Sichuan Hebang Biotechnology | Great Sun vs. Long Yuan Construction |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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